Westerville superintendent warns 25% cash-balance cutoff would force cuts and frequent levies

Angie Hamburg, superintendent of Westerville City Schools, told the House Finance Committee on April 8 that a proposed amendment to suspend property tax collections for any district with a cash balance above 25% would leave her district unable to meet recurring obligations and force repeated levy campaigns.

Hamburg, whose district serves nearly 15,000 students across Franklin and Delaware counties, said the district's elevated cash balance reflects planning and timing rather than excess: "The only band aid we have right now is our cash balance, and like many districts, losing it abruptly would be catastrophic for us." She told the committee the district is using one-time federal ESSER funding to transition positions back to the general fund and is running a multi-year forecast that currently relies on reserves to remain solvent through 2029.

Hamburg said the district has experienced a net funding loss this year after changes in state and local revenue sources: she told the committee the district saw about a $4,000,000 decrease in its state share while property tax increases from reappraisals produced about $2,700,000 in new local revenue, leaving a net loss. She said the district is ‘‘deficit spending year over year by over $20,000,000 throughout the life of our forecast’’ and that losing the cash balance would require immediate, significant cuts or annual levy campaigns.

During questioning, Representative Piccolantonio said community listening sessions showed local business and elected leaders were concerned about school funding; Hamburg confirmed those stakeholders had urged continued support. Hamburg also described operational pressures: "We spend about $638,000 a day in our district" and salary and benefit costs account for roughly 82% of the district's budget, she said. She noted the district banked $25,000,000 in Ohio Facilities Commission credits for capital work and had planned to use cash reserves as part of a multi-year plan after a November levy failed.

Hamburg urged the committee to consider cash-flow timing and the multi-year forecast when evaluating any cash-balance cutoff and welcomed questions from members.

Ending: Hamburg's testimony will be part of the committee record as lawmakers consider amendment language tied to property tax collections in the House operating bill.